To see full report, access www.tam.com.br/ir SAO PAULO, Brazil, Nov. 10 /PRNewswire-FirstCall/ -- TAM S.A. (BOVESPA: TAMM4, NYSE: TAM), reports its third quarter results for 2008 (3Q08). Operational and financial data, except where otherwise indicated, are presented based on amounts consolidated in Reais (R$) and prepared in accordance with accounting principles generally accepted in Brazil (BR GAAP). (Logo: http://www.newscom.com/cgi-bin/prnh/20080221/SPTH002LOGO ) Operational Performance Domestic Operations -- TAM reached 52.4% average market share in 3Q08. -- ASKs (capacity) increased 16.7% in 3Q08 compared to 3Q07 as a result of the net increase in the operating narrow body fleet of 11 aircraft, composed by the increase of 2 A319, 15 A320 and 1 A321, compensated by the elimination of the Fokker 100 (in 3Q07 we had 7 F-100 in our operating fleet). Also block hours by aircraft maintained 12.6 hours/day (total operation). -- RPKs (demand) increased 17.2% in 3Q08 compared to 3Q07. -- TAM's domestic load factor increased to 67.6% in 3Q08, compared to 67.3% in 3Q07. International Operations -- TAM reached 75.8% average market share in 3Q08. -- ASKs (capacity) increased 23.1% in 3Q08, due to the increase of 1 B777, 2 A340, 3 A330 and 2 B767 into our international operating fleet and by the first redelivery of MD11, allowing the beginning of long haul daily flights to Frankfurt and Madrid. In South America we started daily flights to Caracas and Montevideo and two frequencies a week to Bariloche through the increase in the narrow body fleet in the region. Also in South America, we increase our supply operating the B777 to Santiago and substituting all TAM Mercosur's F100 to A320 aircraft. -- RPKs (demand) increased 38.1% comparing 3Q08 with 3Q07. -- TAM's international load factor increased 8.6 p.p. to 79.6% in 3Q08 compared to 71% in 3Q07. Financial Performance -- Total CASK increased by 14.3% in 3Q08 compared to 3Q07, and CASK excluding fuel increased 1.2%. -- EBIT and EBITDAR margins of 5.8% and 14.6% respectively. -- Net loss of R$ 112.7 million, a negative margin of 3.9%. -- Our total cash and cash equivalents equaled R$ 2,105 million. -- Return on Equity (ROE) of (0.68) %. Conference calls Portuguese English November 10, 2008 November 10, 2008 04:00 pm (Brazil time) 04:00 pm (Brazil time) 01:00 pm (US EST) 01:00 pm (US EST) Phone: +55 (11) 4688-6301 US participants: 1-800-860-2442 Password: TAM Other countries: +1 (412) 858-4600 Password: TAM Replay: +55 (11) 4688-6312 Replay: +1 (706) 645-9291 Available from 11/10/2008 Available from 11/10/2008 until 11/16/2008 until 11/16/2008 Code: 791 Code: 982 About TAM: TAM (http://www.tam.com.br/) has been the domestic market leader since July of 2003, and closed September 2008 with 52.8% of market share. The company flies to 42 destinations in Brazil. Through business agreements signed with regional companies, it reaches 79 different destinations in Brazil. TAM's market share among Brazilian companies that operate international flights stood at 82.1% in June. Operations abroad include TAM flights to 17 destinations in the United States, Europe and South America: New York and Miami (USA), Paris (France), London (England), Milan (Italy), Frankfurt (Germany), Madrid (Spain), Buenos Aires and Bariloche (Argentina), Cochabamba and Santa Cruz de la Sierra (Bolivia), Santiago (Chile), Asuncion and Ciudad del Este (Paraguay), Montevideo (Uruguay), Caracas (Venezuela) and Lima (Peru). It has code-share agreements that make possible the sharing of seats on flights with international airlines, enabling passengers to travel to 64 other destinations in the U.S., Europe and South America. Currently, the program has over 5.2 million subscribers and has awarded more than 6.4 million tickets. Forward-looking statement: This notice may contain estimates for future events. These estimates merely reflect the expectations of the company's management and involve risks and uncertainties. The Company is not responsible for investment operations or decisions taken based on information contained herein. These estimates are subject to changes without prior notice. http://www.newscom.com/cgi-bin/prnh/20080221/SPTH002LOGO DATASOURCE: TAM S.A. CONTACT: Libano Miranda Barroso, TAM Investor Relations, +011-55-11- 5582-9715, fax, +011-55-11-5582-8149, Web site: http://www.tam.com.br/ http://www.tam.com.br/ir

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